Shear-It, Inc

Multiple Choice

Shear-it, Inc., produces paper shredders.Shear-it is considering a new shredder design for home offices.The marketing vice president believes that a basic unit in a variety of attractive colors could be sold for $70.Shear-it requires that all new products yield 30% profit.What is the target cost of the new shredder?

A) $21
B) $91
C) $49
D) $100
E) $63.70